FARE & FREIGHT (NANJUNDAPPA) COMMITTEE RECOMMENDATIONS
Ø Crisis in traffic costing world over
Ø Study by ICWA in 1960
Ø Monopoly government rate fixing
Ø Loss to be met by state governments
Ø Adhoc basis discontinued in 1948
Ø 1950’s bifurcation of coaching and goods on an equity basis
Ø 1960 world bank suggested a costing cell
Ø 1970 passenger and EMU services loss identified
Ø 1986 task force – analysis of fully distributed costs – complex in nature passenger no class wise
Ø different costs, different capital, different interest
Ø lacks professional approach
Ø no normalization or annualized of huge expenditure
Suggestions:
1. survey ratios - frequent surveys
2. apportionment - simplified as against 1200 detailed accounts heads, 160 apportionment factors
3. annualisation or normalization – 3 to five years
4. methodology adopted for green book also for passenger (pink ) book
5. liability register to be maintained at the lowest cost centre
6. Accounting system to be revamped with professionals, finance ministry and cost accountants
7. demands to be fixed and variable – accounting complexes
8. interest accrued to be taken for assets replaced by DRF
9. data on the differential cost to be ascertained ( type & class)
10. divisional accounts to delinked from EMU costing
11. divisional accounts to be separated from repair and maintenance of HQ buildings, other railway buildings, welfare building such as central hospital
12. leasing charges to IRFC not be included in EMU costing
13. further breaking of the variable cost of stores, staff, fuel, and energy for each facet of operations
14. loss on branch lines to be made good by additional traffic on mainline based on avoidable cost
15. PRS to be used for collection of data on passengers
16. effective use of surplus staff and stores
17. cost of repairs and maintenance to be fixed assets, depreciation, interest to reckon long time variable cost
18. speed restrictions etc on cost consciousness – brochures and newsletters
19. posting of cost accountants in major cost centers
20. a comprehensive book on traffic costing
21. spread costing information to wider area
No comments:
Post a Comment